The government has raised the price of petrol by around Rs3 per litre, according to a notification issued by the Finance Division late on Saturday night.

According to the notification, the price of petrol has been increased by Rs3.01, from Rs144.82 to Rs147.83, the price of high speed diesel (HSD) has been raised by Rs3, from Rs141.62 to Rs144.62, the price of kerosene has been jacked up by Rs3, from Rs113.48 to Rs116.48, and the price of light diesel oil (LDO) has been increased by Rs3.33, from Rs111.21 to Rs114.54.

The new prices will be effective from January 16 (Sunday).

The Finance Division, in its notification, reasoned that "petroleum products are showing [a] fourth straight weekly gain and witnessed an increased of 6.2 per cent [...] last week in the international market."

It said the price of petroleum products in the international market was "presently at the highest level since last year".

Meanwhile, it added, the existing sale tax rate and petroleum levies on various products were "much below the budgeted targets".

The notification mentioned that the Oil and Gas Regulatory Authority had, therefore, recommended an increase of Rs5.52 per litre in the price of petrol and of Rs6.19 per litre in the price of HSD.

But, it stated, "Prime Minister Imran Khan has directed to absorb the [impact] of international prices through a further cut in the sales tax from last fortnight."

"The finance ministry will [...] take a revenue hit of Rs2.6 billion due to the reduction in the sales tax," the notification said.

"Therefore, the government has decided to make a partial increase in petroleum products' prices in order to provide relief to end consumers," it added.

In recent months, the government has been increasing petroleum levy and general sales tax (GST) on an alternate fortnight basis as part of its negotiations with the IMF. The levy would keep going up by Rs4 on the first of every month until it reached a maximum of Rs30 per litre and GST adjustments would take place on the 15th of every month depending on the price cushion.

It had last increased the price of petrol and HSD by Rs4 per litre on December 31. Meanwhile, the price of kerosene had been increased from Rs109.53 to Rs113.53 and that of LDO from Rs107.06 to Rs111.06.